Steve Hilton proposes abolishing California DMV and capping registration fees

Republican gubernatorial candidate Steve Hilton has proposed a plan to abolish the California Department of Motor Vehicles (DMV). The proposal, announced outside a West Hollywood DMV office, aims to dismantle the state-run agency and replace its centralized bureaucracy with a decentralized system of local offices and other service providers.

A key component of Hilton’s plan is to cap annual vehicle registration fees at a flat $73. Currently, California drivers often pay hundreds or even over $1,000 due to value-based taxes and various surcharges. Hilton argues that the existing system is a “monopoly that treats taxpayers with contempt” and characterizes the agency as a symbol of bloated state bureaucracy.

The campaign estimates that capping registration fees at $73 would reduce registration revenue by approximately $8.3 billion annually. The proposal seeks to address long-standing criticisms regarding the DMV’s slow service and high costs, contrasting California’s complex fee structure with more decentralized or flat-fee models found in other Western states.